Forex
Home›Forex›Major Pairs›Australia manufacturing PMI rises to 52.0 in July as o…
Australia manufacturing PMI rises to 52.0 in July as output returns
The headline PMI improvement came alongside renewed job growth, but 40% of firms still reported higher input costs linked to Middle East fuel and shipping expenses.
Australia’s manufacturing sector showed a tentative improvement in July, with the S&P Global Australia Manufacturing Purchasing Managers’ Index rising to 52.0 from 51.5 in June, moving further above the 50.0 no-change threshold for a fourth straight month, Forexlive reported.
Forexlive said the gain reflected a return to growth in both output and new orders, with production growth recorded for the first time in six months and new orders expanding for the first time since February. Job creation also improved, with manufacturers expanding staffing levels for a third consecutive month at the fastest pace since January, although some hiring was described as temporary.
Even with the better headline reading, Forexlive noted the recovery remained fragile due to persistent inflation pressures. Input cost inflation, though easing, was still well above pre-conflict levels, and 40% of firms reported higher costs tied directly to Middle East driven fuel and shipping expenses.
Forexlive added that renewed declines in export orders, driven by rising prices and competition, point to a currency and competitiveness headwind. The report said the RBA will likely watch the implications for producer price inflation and that S&P Global’s economist warned the recovery could be fleeting if Middle East inflationary pressures reassert themselves.